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HMRC internal manual

Film Production Company Manual

HM Revenue & Customs
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Claims: payment of credit

CTA2009/S1203; ICTA88/S826(3C)

Set off against other liabilities

Any amount of film tax credit to which a film production company (FPC) is entitled, and which it claims, must be paid to it except that:

  • if the FPC owes corporation tax then the credit (and any interest due to the company) may be used to offset the liability;
  • if the FPC has outstanding or purported liabilities for PAYE, deductions under section 966 ITA2007 (visiting performers) or Class 1 national insurance contributions for the period for which the credit is owed, then no payment need be made; and,
  • if the FPC’s corporation tax return for the period in question is enquired into by HMRC, then no payment need be made, but a provisional partial payment may be made if appropriate.

Repayment interest

Payment of film tax credit will carry interest from the later of:

  • the filing date for the FPC’s tax return for the period in relation to which the credit is payable, and
  • the date on which the tax return (or amended return) in which the claim is included was delivered to HMRC.